Accounts payable automation: Thinking outside ERP

31.07.2012

Clearly, AP automation is on the rise; the question is how to best implement it. Before evaluating AP automation solution providers, controllers, finance managers and others in the AP department must explore a number of key considerations; namely, the choice between installing a tool inside the ERP system or using a certified solution with data recognition, validation and workflow that resides outside the ERP system.

One company, one ERP system? Not so fast ...

On the surface, a solution that runs AP workflow inside the ERP system seems like the most reasoned and practical approach. In reality, this type of one-to-one relationship does not accurately reflect the complex, multi-connected global persona of today's business industry, and can lead to dysfunction down the road.

Many of today's companies achieve their growth by , each with their own separate IT systems. This often leads to an impossibly diverse ERP landscape made up of vastly different systems, architectures and data formats -- it's not unheard of for a company to have as many as five ERP systems in use across a global enterprise. Plus, not all ERP systems have workflow engines, and success in modifying the application code to automate AP is not guaranteed.

What are the options? Some companies install an AP workflow tool inside one ERP application. While this may be a compatible solution for a select few, companies running several ERP systems within the organization must still maintain "inside workflow" in each instance. It's only a matter of time before additional costs and consistency issues rear their ugly heads.